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The International Confederation of Private Employment Agencies (CIETT) today lauded the awarding of this year's Nobel Prize for Economics to three economists who developed a theory that helps explain why many people can remain unemployed despite a large number of job vacancies.
The prize was awarded Monday to Christopher Pissarides of the London School of Economics, Peter Diamond of the Massachusetts Institute of Technology and Dale Mortensen of Northwestern University.
"The professors examined which factors either hinder or improve the efficiency of matching job vacancies with those searching for work or looking to change jobs," CIETT reported.
"We are aligned with the laureates' argument that governments must review regulations in the labor market in order to boost employment levels," said Denis Pennel, managing director of CIETT. "What we need now is greater recognition at [the] policy level of the role played by the private employment agency industry in facilitating the match between supply and demand of work. Private employment services keep job-seekers in touch with the jobs market by acting as a stepping stone to the labor market and by smoothing transitions between education and work."
One conclusion reached by the economists is that more generous unemployment benefits lead to higher unemployment and longer search times, according to Nobelprize.org.